NCLAT dismisses appeals, upholds Sapphire Media’s bid for Reliance Broadcast Network

The National Company Law Appellate Tribunal (NCLAT) dismissed a series of appeals challenging the National Company Law Tribunal's (NCLT) decision to approve Sapphire Media's bid for Reliance Broadcast Network.  

NCLAT upheld the order of Mumbai bench of NCLT, approving Sapphire Media's resolution plan for Reliance Broadcast, which operates the FM radio brand Big 92.7 FM. Its decision was contested by unsuccessful resolution applicants, Abhijit Realtors & Infraventure and Creative Channel Advertising & Marketing, through five separate appeals filed with the NCLAT.  

The petitioners had alleged irregularities in the process adopted by the resolution professional of Reliance Broadcast Network (RBNL), but these claims were rejected by the appellate tribunal.  

"We have already found that the challenge mechanism as well as negotiation conducted by the resolution professional is in accordance with the CIRP Regulations and Process Note," the NCLAT stated.  

The tribunal also found no irregularities in the eligibility evaluation of the successful bidder, Sapphire Media, concluding that the resolution professional had acted appropriately. It stated that it "does not find any tenable ground" raised by the petitioners to interfere with the order approving the resolution plan.  

The Corporate Insolvency Resolution Process (CIRP) against Reliance Broadcast Network (RBNL) was initiated by the NCLT on February 24, 2023, following an application by IDBI Trusteeship Services, a financial creditor of the company.  

During the CIRP, the resolution professional (RP) received six resolution plans. Among these, Abhijit Realtors & Infraventure submitted a bid of Rs 80.20 crore, Creative Channel Advertising & Marketing offered Rs 100 crore, Entertainment Network (India) bid Rs 37.17 crore, and Sapphire Media proposed Rs 104.28 crore. The Committee of Creditors (CoC) opted to conduct a challenge process under the RFRP (Request-For-Resolution-Plan), setting a base price of Rs 240 crore.  

On November 4, 2023, the revised bids were submitted: Rs 248 crore by the consortium of Abhijit Realtors & Infraventure and ENIL (formed during the challenge process), Rs 240 crore by Creative Channel Advertising & Marketing, and Rs 261 crore by Sapphire Media.  

With an 88.97% vote, the CoC approved Sapphire Media's bid and forwarded it to the NCLT, which granted its approval. However, allegations were raised before the NCLAT regarding Sapphire Media's eligibility to submit a resolution plan and the integrity of the challenge process. These objections were dismissed by the NCLAT.